Wednesday, February 14, 2007


NIFTY: - Open 4069 High 4133 Low 3998 Close 4045 (dn 14 pts)

P/E 19.45 P/B 5.15 Adv 16 Dec 34 Vol Rs 10010 Cr

EMA20 4109 EMA50 4015 EMA100 3862

Supp 3985/3943/3885 Res 4120/4195/4250

SENSEX: - Open 14168 High 16364 Low 13958 Close 14091 (dn 99 pts)

EMA20 14241 EMA50 13919 EMA100 13371

Supp 13930/13665/13530 Res 14210/14375/14540

What happened on Tuesday:-

We witnessed a very volatile day. It was like a yo-yo the whole day and market players were forced to ponder about how the closing would be i.e. UP or DOWN. First we saw panic to take us to 14013 levels and then strong bounce back, just to break the lows once again and go below psychological levels of 14000. But again there was a final bounce-back to close just 14 points down on the Nifty and almost 100 points on the Sensex.

Top Gainers:- Zee Tele, Bajaj Auto, GAIL, ONGC, Bharti Airtel

Top Losers:- VSNL, Jet Airways, Hindalco, RCom, L&T

FII trading activity:- Buy Rs 2585.42 Cr Sell Rs 2970.53 Cr Net Sell Rs 385.11 Cr (Provisional for 13 February 2007)

Indian ADRs :-

F&O Hints:-

Stocks that added Open Interest :- Guj Amb Cem, UTI Bank, Zee Tele, Orchid, L&T, IFCI

Stocks that lost OI:- ICICI Bank, Jindal Steel, JSW Steel, SRF, Essar Oil, JStainless, RPL, Crompton Greaves, Federal Bank, Escorts, Hindalco, Satyam Comp, Bajaj Auto

Outlook for Wednesday:-

Initially consider 3985 and 3943 as crucial supports on the Nifty. The same levels on the Sensex are 13930 and 13860-13880. It must not be cut and we must not close below this region. If that happens, the fall can get bigger in near future.

But this looks distant and some morning panic is possible because of CRR hike. Banks may open gap down. But the CRR hike looks like discounted by the market already and we should recover from the panic situation.

Global cues are not so strong to give any indication. Just Wipro and MTNL ADRs closed in the positive yesterday. All others were down.

Catch them falling:-

FMCG stocks like ITC, Hind Lever, Colgate have not seen much of selling in this fall and can be picked for short term bounce. Other stocks to buy are Larsen & Toubro (1593/1580), Infosys(2260/2230), Dr Reddy(710-715), Tcs(1220/1190), Maruti(870), Beml(1055-1070), Bhel(2250-2270). Investors can buy them. (The levels in brackets show short term supports and they should be used as guidelines and not as exact touching points)

RBI hikes CRR

TCS opens joint venture in China

Disclaimer: These recommendations are based on the theory of technical analysis and personal observations. This does not claim for profit. I am not responsible for any losses made by traders. It is only the outlook of the market with reference to its previous performance. You are advised to take your position with your sense and judgment. I am trying to consider the fundamental validity of stocks as far as possible, but demand and supply affects it with vision variations.

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